Romanian private pension funds managed some EUR 4.25 billion in assets at the end of September 2014, up by 30% compared to the end of 2013, according to statistics released by the Romanian Pension Funds' Association (APAPR).

About 94% of these funds’ investment were in Romania, and about 75% to 80% of the funds’ assets were placed in low risk instruments, such as state bonds and bank deposits. Private pension funds held 11% of Romania’s state bonds.

Some EUR 700 million were invested in stocks listed on the Bucharest Stock Exchange, which makes pension funds the largest local institutional investors, with a crucial role in the recent public offers made by state owned companies.

The second pillar of the pension system, which includes mandatory private pension funds, currently has eight funds with EUR 4 billion in total assets from 6.2 million participants. They recorded an average annual return of 11.2% since their launch in May 2008.

The third pillar of the pension system includes optional private pension funds. It has ten funds with total assets of EUR 225 million and 337,000 participants.

editor@romania-insider.com